Investigation finds Red Cross agreed to withhold Orleans aid

Top Red Cross officials Bush appointee, Head $130,000 donor

Unknown to most Red Cross donors, Congress incorporated the Red Cross to act "under government supervision" and eight of the fifty members of the Board Governors are to be appointed by the President, seven of whom are federal officials.

Though not a government agency, the Red Cross may purchase supplies from the armed forces and use government buildings for its offices and storage. Its employees may in some cases be provided meals and housing while serving with the Army. Commissioned officers of the Army, Navy and Air Force may be detailed for duty with the Red Cross.

While courts have considered the Red Cross a "government instrumentality" immune from state taxation, they have not viewed it as such for purposes of religious discrimination or Freedom of Information Act claims. In other words, the Red Cross obtains the tax benefits of being a "government instrumentality," but is exempt from the obligations that government carries.